December Core Net New Assets Equal $61.4 Billion, 4Q24 Totals $114.8 Billion

4Q Net Revenues Up 20% Year-Over-Year to $5.3 Billion

Quarterly GAAP Earnings Per Share of $.94, $1.01 Adjusted ⁽¹⁾ – Up 49% Versus 4Q23

The Charles Schwab Corporation reported net income for the fourth quarter totaling $1.8 billion, or $.94 earnings per share. Excluding $177 million of pre-tax transaction-related and restructuring costs, adjusted ⁽¹⁾ net income and earnings per share equaled $2.0 billion and $1.01, respectively.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250121070609/en/

Client Driven Growth	$367B 2024 Core Net New Assets	"In the fourth quarter of 2024, we added $115 billion in core net new assets, bringing asset gathering for the year to $367 billion – a 4.3% annualized growth rate. This 20% annual increase in net new assets reflects our ongoing progress following the Ameritrade integration." CEO Rick Wurster

Revenue Growth	20% 4Q24 Revenue Growth vs. 4Q23	"Strong client engagement, increased margin utilization, encouraging client cash trends, and record net inflows into our Managed Investing Solutions helped lift 4Q24 revenue to $5.3 billion, – an increase of 20% year-over-year." CEO Rick Wurster

Through- the-Cycle Profitability	46.6% 4Q24 Adjusted Pre-Tax Profit Margin ⁽¹⁾	"The combination of 20% revenue growth and disciplined expense management resulted in a 4Q24 pre-tax profit margin of 43.3% – 46.6% adjusted ⁽¹⁾ – as well as quarterly GAAP and adjusted ⁽¹⁾ earnings per share growth of 84% and 49%, respectively." CFO Mike Verdeschi

Balance Sheet Management	$14.9B 4Q24 Reduction in Bank Supplemental Funding ⁽²⁾	"Client transactional sweep cash grew by $35 billion versus 3Q24, including a $25 billion increase in December due to typical year-end seasonality. This build helped us further reduce Bank Supplemental Funding by $14.9 billion to $49.9 billion – down ~50% from peak levels." CFO Mike Verdeschi

4Q24 Client and Business Highlights

Net asset gathering helped total client assets increase 19% year-over-year to $10.10 trillion
Core net new assets equaled $114.8 billion, bringing full year total to $366.9 billion – up 20% versus 2023
New brokerage account openings increased 23% year-over-year to 1.1 million for the quarter, pushing total active accounts to 36.5 million
Managed Investing Solutions net inflows of $15 billion brought the full-year total to a record $55 billion – with converted Retail Ameritrade clients accounting for approximately 35% of net inflows
Margin balances grew sequentially by 15% to $83.8 billion, up 34% from year-end 2023
Trading activity increased 11% relative to the prior quarter as client engagement surged following the election
Retail client satisfaction scores achieved record levels, while Advisor Services promoter scores remained above pre-conversion levels
Schwab was awarded America's Best Customer Service 2025 by Newsweek ⁽³⁾
Schwab Mobile recognized as the #1 mobile investing app by Corporate Insight ⁽⁴⁾


	Three Months Ended December 31,						%		Twelve Months Ended December 31,						%
Financial Highlights	2024			2023			Change		2024			2023			Change

Net revenues (in millions)	$	5,329		$	4,459		20	%	$	19,606		$	18,837		4	%
Net income (in millions)
GAAP	$	1,840		$	1,045		76	%	$	5,942		$	5,067		17	%
Adjusted	$	1,974		$	1,367		44	%	$	6,433		$	6,159		4	%
Diluted earnings per common share
GAAP	$	.94		$	.51		84	%	$	2.99		$	2.54		18	%
Adjusted	$	1.01		$	.68		49	%	$	3.25		$	3.13		4	%
Pre-tax profit margin
GAAP		43.3	%		26.8	%				39.2	%		33.9	%
Adjusted		46.6	%		36.0	%				42.5	%		41.5	%
Return on average common stockholders' equity (annualized)		18	%		12	%				15	%		16	%
Return on tangible common equity (annualized)		36	%		43	%				35	%		54	%

Note:

Items labeled "adjusted" are non-GAAP financial measures; further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

4Q24 Financial Commentary

Net revenues grew on both a year-over-year and sequential basis, up 20% and 10%, respectively
Sequential net interest margin expanded by 25 basis points to 2.33%
Client transactional sweep cash balances ended at $418.6 billion, a sequential increase of $34.6 billion
Bank Supplemental Funding ⁽²⁾ declined sequentially by $14.9 billion to $49.9 billion at December month-end
Asset management and administration fees achieved a quarterly record of $1.5 billion
Trading revenue increased 14% versus 4Q23 as a result of higher volumes and changes in trading mix
GAAP expenses for the quarter declined 7% versus 4Q23
Fourth quarter acquisition and integration-related costs, amortization of acquired intangibles, and restructuring costs equaled $177 million; exclusive of these items, adjusted total expenses ⁽¹⁾ were flat year-over-year
Capital ratios across the firm continue to strengthen – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage ⁽¹⁾ reaching 9.9% and 6.8%, respectively
Results reflect certain items, including the resolution of previously accrued tax and legal reserves, which contributed $.03 to both GAAP and adjusted diluted earnings per share ⁽¹⁾

⁽¹⁾		Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.
⁽²⁾		Bank Supplemental Funding includes repurchase agreements at the banks, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances.
⁽³⁾		Newsweek America's Best Customer Service 2025 was given on October 30, 2024, and expires November 1, 2025. The criteria, evaluation, and ranking were determined by Newsweek, partnered with Statista. Visit https://d.newsweek.com/en/file/473784/newsweek-americas-best-customer-service-2025-methodology.pdf for more information. Schwab paid a licensing fee to Newsweek for use of the award and logos.
⁽⁴⁾		Schwab leads in mobile rankings in Corporate Insight's 2024 Brokerage Experience Benchmarks (https://corporateinsight.com/the-2024-brokerage-experience-benchmarks), which evaluate the individual investor experience offered by 20 leading brokerage websites and mobile apps. This research was independently conducted by Corporate Insight using the Experience Benchmarks' analytical frameworks that are built on over 25 years of research to provide a clear view of how the nation's top brokerage websites and mobile apps stack up against one another in terms of functionality, design, navigation, and usability.

Winter Business Update

The company will host its Winter Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.

Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.

Forward-Looking Statements

This press release contains forward-looking statements relating to the company's ongoing progress following the Ameritrade acquisition; asset gathering; client cash trends; competitive position; through-the-cycle profitability; and capital ratios. These forward-looking statements reflect management's expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.

Important factors that may cause such differences are described in the company's most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company's website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission's website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with 36.5 million active brokerage accounts, 5.4 million workplace plan participant accounts, 2.0 million banking accounts, and $10.10 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Net Revenues
Interest revenue	$	3,851		$	3,963		$	15,537		$	16,111
Interest expense		(1,320	)		(1,833	)		(6,393	)		(6,684	)
Net interest revenue		2,531			2,130			9,144			9,427
Asset management and administration fees		1,509			1,241			5,716			4,756
Trading revenue		873			767			3,264			3,230
Bank deposit account fees		241			174			729			705
Other		175			147			753			719
Total net revenues		5,329			4,459			19,606			18,837
Expenses Excluding Interest
Compensation and benefits		1,533			1,409			6,043			6,315
Professional services		297			253			1,053			1,058
Occupancy and equipment		276			331			1,060			1,254
Advertising and market development		101			104			397			397
Communications		131			144			591			629
Depreciation and amortization		224			238			916			804
Amortization of acquired intangible assets		130			130			519			534
Regulatory fees and assessments		89			270			398			547
Other		243			386			937			921
Total expenses excluding interest		3,024			3,265			11,914			12,459
Income before taxes on income		2,305			1,194			7,692			6,378
Taxes on income		465			149			1,750			1,311
Net Income		1,840			1,045			5,942			5,067
Preferred stock dividends and other		123			119			464			418
Net Income Available to Common Stockholders	$	1,717		$	926		$	5,478		$	4,649
Weighted-Average Common Shares Outstanding:
Basic		1,831			1,823			1,828			1,824
Diluted		1,836			1,828			1,834			1,831
Earnings Per Common Shares Outstanding ⁽¹⁾:
Basic	$	.94		$	.51		$	3.00		$	2.55
Diluted	$	.94		$	.51		$	2.99		$	2.54

⁽¹⁾		The Company has voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class.

THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
	Q4-24 % change				2024												2023
	vs.		vs.		Fourth			Third			Second			First			Fourth
(In millions, except per share amounts and as noted)	Q4-23		Q3-24		Quarter			Quarter			Quarter			Quarter			Quarter
Net Revenues
Net interest revenue	19	%	14	%	$	2,531		$	2,222		$	2,158		$	2,233		$	2,130
Asset management and administration fees	22	%	2	%		1,509			1,476			1,383			1,348			1,241
Trading revenue	14	%	10	%		873			797			777			817			767
Bank deposit account fees	39	%	59	%		241			152			153			183			174
Other	19	%	(13	)%		175			200			219			159			147
Total net revenues	20	%	10	%		5,329			4,847			4,690			4,740			4,459
Expenses Excluding Interest
Compensation and benefits ⁽¹⁾	9	%	1	%		1,533			1,522			1,450			1,538			1,409
Professional services	17	%	16	%		297			256			259			241			253
Occupancy and equipment	(17	)%	2	%		276			271			248			265			331
Advertising and market development	(3	)%	—			101			101			107			88			104
Communications	(9	)%	(11	)%		131			147			172			141			144
Depreciation and amortization	(6	)%	(3	)%		224			231			233			228			238
Amortization of acquired intangible assets	—		—			130			130			129			130			130
Regulatory fees and assessments	(67	)%	1	%		89			88			96			125			270
Other ⁽²⁾	(37	)%	(6	)%		243			259			249			186			386
Total expenses excluding interest	(7	)%	1	%		3,024			3,005			2,943			2,942			3,265
Income before taxes on income	93	%	25	%		2,305			1,842			1,747			1,798			1,194
Taxes on income	N/M		7	%		465			434			415			436			149
Net Income	76	%	31	%		1,840			1,408			1,332			1,362			1,045
Preferred stock dividends and other	3	%	13	%		123			109			121			111			119
Net Income Available to Common Stockholders	85	%	32	%	$	1,717		$	1,299		$	1,211		$	1,251		$	926
Earnings per common share ⁽³⁾:
Basic	84	%	32	%	$	.94		$	.71		$	.66		$	.69		$	.51
Diluted	84	%	32	%	$	.94		$	.71		$	.66		$	.68		$	.51
Dividends declared per common share	—		—		$	.25		$	.25		$	.25		$	.25		$	.25
Weighted-average common shares outstanding:
Basic	—		—			1,831			1,829			1,828			1,825			1,823
Diluted	—		—			1,836			1,834			1,834			1,831			1,828
Performance Measures
Pre-tax profit margin						43.3	%		38.0	%		37.2	%		37.9	%		26.8	%
Return on average common stockholders' equity (annualized) ⁽⁴⁾						18	%		14	%		14	%		15	%		12	%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents	(3	)%	21	%	$	42.1		$	34.9		$	25.4		$	31.8		$	43.3
Cash and investments segregated	20	%	13	%		38.2			33.7			21.7			25.9			31.8
Receivables from brokerage clients — net	24	%	15	%		85.4			74.0			72.8			71.2			68.7
Available for sale securities	(23	)%	(8	)%		83.0			90.0			93.6			101.1			107.6
Held to maturity securities	(8	)%	(2	)%		146.5			149.9			153.2			156.4			159.5
Bank loans — net	12	%	4	%		45.2			43.3			42.2			40.8			40.4
Total assets	(3	)%	3	%		479.8			466.1			449.7			468.8			493.2
Bank deposits	(11	)%	5	%		259.1			246.5			252.4			269.5			290.0
Payables to brokers, dealers, and clearing organizations⁽⁵⁾	102	%	(19	)%		13.3			16.4			5.9			6.7			6.6
Payables to brokerage clients	20	%	14	%		101.6			89.2			80.0			84.0			84.8
Other short-term borrowings	(9	)%	(43	)%		6.0			10.6			10.0			8.4			6.6
Federal Home Loan Bank borrowings	(37	)%	(26	)%		16.7			22.6			24.4			24.0			26.4
Long-term debt	(14	)%	—			22.4			22.4			22.4			22.9			26.1
Stockholders' equity	18	%	3	%		48.4			47.2			44.0			42.4			41.0
Other
Full-time equivalent employees (at quarter end, in thousands)	(3	)%	—			32.1			32.1			32.3			32.6			33.0
Capital expenditures — purchases of equipment, office facilities, and property, net (in millions)	30	%	91	%	$	258		$	135		$	92		$	122		$	199
Expenses excluding interest as a percentage of average client assets (annualized)						0.12	%		0.12	%		0.13	%		0.14	%		0.16	%
Clients' Daily Average Trades (DATs) (in thousands)	22	%	11	%		6,312			5,697			5,486			5,958			5,192
Number of Trading Days	1	%	(1	)%		63.0			63.5			63.0			61.0			62.5
Revenue Per Trade ⁽⁶⁾	(7	)%	—		$	2.20		$	2.20		$	2.25		$	2.25		$	2.36

⁽¹⁾		Fourth quarter of 2023 includes $16 million in restructuring costs.
⁽²⁾		Fourth quarter of 2023 includes $181 million in restructuring costs.
⁽³⁾		The Company has voting and nonvoting common stock outstanding. As the participation rights, including dividend and liquidation rights, are identical between the voting and nonvoting stock classes, basic and diluted earnings per share are the same for each class.
⁽⁴⁾		Return on average common stockholders' equity is calculated using net income available to common stockholders divided by average common stockholders' equity.
⁽⁵⁾		Payables to brokers, dealers, and clearing organizations include securities loaned.
⁽⁶⁾		Revenue per trade is calculated as trading revenue divided by the product of DATs multiplied by the number of trading days.
N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.

THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)
	Three Months Ended December 31,												Twelve Months Ended December 31,
	2024						2023						2024						2023
	Average Balance		Interest Revenue/ Expense		Average Yield/ Rate		Average Balance		Interest Revenue/ Expense		Average Yield/ Rate		Average Balance		Interest Revenue/ Expense		Average Yield/ Rate		Average Balance		Interest Revenue/ Expense		Average Yield/ Rate
Interest-earning assets
Cash and cash equivalents	$	28,332	$	334	4.61	%	$	35,312	$	475	5.27	%	$	29,676	$	1,539	5.10	%	$	37,846	$	1,894	4.94	%
Cash and investments segregated		36,510		429	4.60	%		23,830		314	5.16	%		28,450		1,443	4.99	%		28,259		1,355	4.73	%
Receivables from brokerage clients		77,524		1,378	6.95	%		62,602		1,260	7.88	%		70,811		5,420	7.53	%		61,914		4,793	7.64	%
Available for sale securities ⁽¹⁾		92,216		486	2.09	%		118,831		647	2.16	%		101,659		2,166	2.12	%		137,178		2,987	2.17	%
Held to maturity securities ⁽¹⁾		147,608		638	1.72	%		160,378		700	1.74	%		152,566		2,636	1.72	%		165,634		2,872	1.73	%
Bank loans		44,248		483	4.36	%		40,386		437	4.31	%		42,255		1,867	4.42	%		40,234		1,664	4.14	%
Total interest-earning assets		426,438		3,748	3.46	%		441,339		3,833	3.43	%		425,417		15,071	3.51	%		471,065		15,565	3.28	%
Securities lending revenue				72						78						330						419
Other interest revenue				31						52						136						127
Total interest-earning assets	$	426,438	$	3,851	3.56	%	$	441,339	$	3,963	3.54	%	$	425,417	$	15,537	3.61	%	$	471,065	$	16,111	3.39	%
Funding sources
Bank deposits	$	244,176	$	550	0.90	%	$	280,380	$	971	1.37	%	$	256,212	$	3,152	1.23	%	$	306,505	$	3,363	1.10	%
Payables to brokers, dealers, and clearing organizations ⁽²⁾		13,045		142	4.28	%		5,386		51	3.72	%		8,522		372	4.30	%		4,477		147	3.23	%
Payables to brokerage clients		82,279		43	0.21	%		61,781		66	0.43	%		72,776		272	0.37	%		66,842		271	0.41	%
Other short-term borrowings		9,094		122	5.33	%		6,724		95	5.63	%		9,146		504	5.51	%		7,144		375	5.25	%
Federal Home Loan Bank borrowings		19,392		257	5.18	%		31,630		423	5.28	%		23,102		1,245	5.32	%		34,821		1,810	5.14	%
Long-term debt		22,438		206	3.67	%		25,457		226	3.54	%		23,083		846	3.66	%		22,636		715	3.16	%
Total interest-bearing liabilities ⁽²⁾		390,424		1,320	1.34	%		411,358		1,832	1.77	%		392,841		6,391	1.62	%		442,425		6,681	1.51	%
Non-interest-bearing funding sources ⁽²⁾		36,014						29,981						32,576						28,640
Other interest expense				—						1						2						3
Total funding sources	$	426,438	$	1,320	1.23	%	$	441,339	$	1,833	1.65	%	$	425,417	$	6,393	1.49	%	$	471,065	$	6,684	1.41	%
Net interest revenue			$	2,531	2.33	%			$	2,130	1.89	%			$	9,144	2.12	%			$	9,427	1.98	%

⁽¹⁾		Amounts have been calculated based on amortized cost.
⁽²⁾		Beginning in 2024, payables to brokers, dealers, and clearing organizations is presented separately from non-interest-bearing funding sources and included in total interest-bearing liabilities. This line item includes securities loaned and related interest expense. Prior period amounts have been reclassified to reflect this change.

THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)

	Three Months Ended December 31,												Twelve Months Ended December 31,
	2024						2023						2024						2023
	Average Client Assets		Revenue		Average Fee		Average Client Assets		Revenue		Average Fee		Average Client Assets		Revenue		Average Fee		Average Client Assets		Revenue		Average Fee
Schwab money market funds	$	580,957	$	389	0.27	%	$	461,091	$	299	0.26	%	$	539,113	$	1,461	0.27	%	$	391,864	$	1,034	0.26	%
Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs)		647,170		125	0.08	%		486,340		98	0.08	%		588,999		462	0.08	%		471,832		382	0.08	%
Mutual Fund OneSource^® and other no-transaction- fee funds		363,024		231	0.25	%		289,841		188	0.26	%		342,615		878	0.26	%		249,131		657	0.26	%
Other third-party mutual funds and ETFs		629,913		106	0.07	%		572,027		97	0.07	%		611,999		420	0.07	%		640,689		490	0.08	%
Total mutual funds, ETFs, and CTFs⁽¹⁾	$	2,221,064	$	851	0.15	%	$	1,809,299	$	682	0.15	%	$	2,082,726	$	3,221	0.15	%	$	1,753,516	$	2,563	0.15	%
Managed investing solutions ⁽¹⁾
Fee-based	$	582,464	$	557	0.38	%	$	465,266	$	475	0.41	%	$	542,253	$	2,129	0.39	%	$	458,114	$	1,868	0.41	%
Non-fee-based		115,712		—	—			98,679		—	—			111,571		—	—			96,633		—	—
Total managed investing solutions	$	698,176	$	557	0.32	%	$	563,945	$	475	0.33	%	$	653,824	$	2,129	0.33	%	$	554,747	$	1,868	0.34	%
Other balance-based fees ⁽²⁾		827,930		76	0.04	%		664,774		65	0.04	%		776,715		286	0.04	%		608,170		254	0.04	%
Other ⁽³⁾				25						19						80						71
Total asset management and administration fees			$	1,509					$	1,241					$	5,716					$	4,756

⁽¹⁾		Managed investing solutions, formerly referred to as "Advice solutions", includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth Advisory™, Schwab Managed Portfolios™, Managed Account Select^®, Schwab Advisor Network^®, Windhaven Strategies^®, ThomasPartners^® Strategies, Wasmer Schroeder™ Strategies, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios^®, Institutional Intelligent Portfolios^®, Schwab Intelligent Portfolios Premium^®, AdvisorDirect^®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.
⁽²⁾		Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.
⁽³⁾		Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based.

THE CHARLES SCHWAB CORPORATION

Growth in Client Assets and Accounts

(Unaudited)

Q4-24 % Change

Schwab Reports Fourth Quarter and Full Year Results